(AUSTIN) — Texas families have through July 31 to enroll their newborns in the Texas Tuition Promise Fund® and pay this academic year’s rates for all or some future tuition and schoolwide required fees at Texas public colleges and universities, excluding medical and dental institutions. Newborns are children younger than one year of age at the time of enrollment.
“For parents of newborns, saving for college may not always be top of mind,” Texas Comptroller Glenn Hegar said. “That’s why we’re reminding new parents to take advantage of the opportunity to lock in this year’s rates before next year’s rates go into effect on Sept. 1.”
Under the Texas Tuition Promise Fund, the state’s prepaid college tuition program, participants can purchase tuition units and lock in the costs of undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities based on today’s prices.
Families can use the plan at Texas medical and dental institutions, private Texas colleges and universities, out-of-state colleges and universities, and career schools for additional flexibility. Also, it is for eligible apprenticeship programs, where tuition is not locked in, and the benefits and payouts would be based on the Transfer Value.
Enrollment at 2020-21 prices closed on Feb. 28 for children one year of age and older. The next annual enrollment period begins on Sept. 1, with new contract prices based on Texas public college costs for the 2021-22 school year.
Complete plan information, including the plan description and agreement, current sales prices, enrollment forms, and more, is available at TuitionPromise.org or by calling 800-445-GRAD (4723), Option 5.
The program’s outreach team also offers free webinars to provide an overview of the plan, discuss the different tuition unit types and payment options, and provide information about Texas Match the Promise Foundation℠ matching scholarship opportunities. Go to the Texas Tuition Promise Fund website for information about how to register to attend upcoming webinars.
Participation in the Texas Tuition Promise Fund does not guarantee admission to or graduation from any college or university. In addition, only the named purchaser may direct redemptions, withdrawals, changes in the designated beneficiary, or other contract changes.
Non-residents of Texas should consider whether their home state or the beneficiary’s home state offers its residents any state tax or other state benefits. Reliefs such as financial aid, scholarship funds, and protection from creditors are only available for participants in that state’s 529 plan.
A contract including the amount contributed, or applied as a benefit or paid as a refund, is not guaranteed, insured, or treated as a deposit or other obligation by Texas, the FDIC, the Texas Prepaid Higher Education Tuition Board, any other state or federal governmental agency or Orion Advisor Solutions, Inc. or its affiliates. The contracts have not been registered with or approved by the U.S. Securities and Exchange Commission or any state.
Purchasers should carefully consider the risks, administrative fees, service, and other charges and expenses associated with the contracts, including Plan termination and decreased transfer or refund value.
Transfer Value applies to tuition redemption at Texas private colleges and universities, out-of-state colleges and universities, medical and dental schools, eligible apprenticeships, and career schools. Match the Promise Foundation scholarships can only be used at Texas public colleges and universities, and you cannot transfer value utilized. Transfer Value is limited to the lesser of
(1) the Tuition Unit’s costs would cover at a public college or university or (2) the original purchase price of the Tuition Unit plus or minus the plan’s net investment earnings or losses on that amount. Orion Advisor Solutions, Inc. serves as plan manager of the plan.
The Plan Description and Master Agreement contains this and other information about the plan and may be obtained on the website or by calling the number provided above. Purchasers should read these documents carefully before purchasing a contract.